Market Definition
Propane Dehydrogenation (PDH) to propylene is referred to as the process of the conversion of propane into propylene through the removal of hydrogen atoms. It takes place through the PDH Technology rather than steam cracking of hydrocarbons to produce on-purpose propylene.
Market Insights & Analysis: Global Propane Dehydrogenation (PDH) to Propylene Market (2023-28):
The Global Propane Dehydrogenation (PDH) to Propylene Market is estimated to grow at a CAGR of around 9.20% during the forecast period, i.e., 2023-28. The factor attributing to the growth of the PDH to propylene technology is the rising demand for on-purpose propylene. Conventionally, propylene was synthesized as the by-product of petroleum refining and ethylene production processes such as steam cracking, Fluid Catalytic Cracking (FCC), etc.
Due to this, propylene production was heavily reliant on the operating environment, feedstock order, and the efficiency of these processes. The dependence on the feedstock had put propylene production at risk, causing a gap in the demand & supply of propylene during the historical years. Therefore, to mitigate the reliance on the feedstock & the operating environment, the chemical companies BASF, Dow Chemicals, etc., have been opting for the PDH technology for the on-purpose propylene production. For instance,
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 9.20% |
| Regions Covered | North America: US, Canada, Mexico |
| Europe: Germany, The UK, France, Spain, Belgium, Rest of Europe | |
| Asia-Pacific: China, Japan, South Korea, India, Southeast Asia, Rest of Asia Pacific | |
| Middle East & Africa: The UAE, Saudi Arabia, Bahrain, Qatar, Egypt, Turkey, Rest of the Middle East & Africa | |
| Key Companies Profiled | LyondellBasell Industries Holdings B.V. , Honeywell International Inc., Dow Chemical Company, KBR Inc., Lummus Technology LLC, ExxonMobil, CB&I, Thyssenkrupp Industrial Solutions, Other |
| Unit Denominations | USD Million/Billion |
In addition, the PDH to propylene technology offers benefits such as higher propylene yield, flexibility for feedstock, etc., over the traditional propylene production methods. As a result, it became a more favorable solution for the direct conversion of propane to propylene, thus, driving the Global Propane Dehydrogenation (PDH) to Propylene Market.
Moreover, the infrastructural development in the region such as the Middle East, Asia-Pacific, and others, as part of their growth strategies has been augmenting the requirement of the heavy & medium commercial vehicles such as haul & dump trucks. These vehicles are necessarily required for building & construction materials transportation, as a result, their demand has been increasing significantly.
This burgeoning demand for commercial vehicles has led to the set up the new automotive plants in the countries such as India, China, etc., which has been consequently facilitating the requirement for propylene & its derived products since these chemicals are used for manufacturing the critical elements of automotive vehicles such as bumpers, dashboards, interior trims, and fuel systems among others. Therefore, the increasing demand for propylene from the automotive sector has been propelling the petrochemical companies like Fuzhou petrochemical complex, Zhenhua Petrochemical Co. Ltd, and others to expand their propylene production capacity and opt for the PDH technology. For instance,
This increasing inclination of the petrochemical companies to cater to the rising demand for propylene by automotive OEMs such as Tata Motors, Honda, etc., has contributed to the growth of the Global Propane Dehydrogenation (PDH) to Propylene Market. Further, as the demand in the automotive sector would continue to upscale, it would further result in the surging requirement for PDH technology in the forthcoming years.
Global Propane Dehydrogenation (PDH) to Propylene Market Driver:
Increasing Demand for Propylene in Consumer Goods Industries Enhances the Market Growth – Over the past few years, the e-commerce sector in the countries like India, Saudi Arabia, the UAE, etc., has significantly increased due to higher internet penetration & the changing consumer preference towards quick commerce. For instance,
The rising inclination of consumers has also led to the launch of several online e-commerce platforms like Squarespace, Bigcommerce, etc., and the booming trend of Quick-commerce has further accelerated the demand for plastic-based packaging. In addition, these plastic-based packaging products are generally inexpensive, readily available, and protect the products from breaking and leakage. Therefore, quick commerce companies have been offering their products with plastic packaging.
This intensifying requirement for plastic-based packaging has augmented the demand for propylene & its derived products since they are needed in plastic manufacturing. As a result, the chemical industries like Mitsubishi, Saudi Polyolefin Co. (SPC), etc., in the countries such as China, India, etc., have been increasingly producing on-purpose propylene by opting for PDH Technology, thus, driving the Global Propane Dehydrogenation (PDH) to Propylene Market.
Moreover, several countries across the globe are actively implementing many initiatives to enhance and solidify their position as a hub for global e-commerce. For instance,
Through these initiatives across different countries, the demand for packaging solutions is further projected to increase, which would drive the growth of the Propane Dehydrogenation (PDH) to Propylene Market in the coming years.
Global Propane Dehydrogenation (PDH) to Propylene Market Opportunity:
Rising Development of PDH Plants to Support Market Growth – The requirement for propylene in a wide range of industries including consumer goods, automotive, textile, etc., is resulting in the setting up of new PDH plants across the globe. As a result, the need for PDH technology used in PDH plants for propylene generation is likely to surge in the foreseen years. The government & private entities in the countries such as the US, South Korea, Belgium, and the Netherlands, etc., have been heavily investing in the production projects of the new PDH Plants to cater to the growing needs for propylene. For instance,
The chemical compound is used in a wide range of products and is referred to as a building block of the petrochemical industry. However, the limited capacity for the development of propylene has been creating a significant supply demand gap. As a result, the government & the leading chemical manufacturers like Dow Chemicals, SABIC, etc., have been investing to build new PDH plants across the region. For instance,
Thus, the formation of new PDH Plants across the globe would necessitate the requirement of PDH Technology, leading to Global Propane Dehydrogenation (PDH) to Propylene Market Growth in the coming years.
Global Propane Dehydrogenation (PDH) to Propylene Market Challenge:
High Investment Costs Hinders Market Growth– The requirement of high capital investment due to factors such as the complex infrastructure of the PDH plants that comprise reactors, catalysts, separation units, etc., has been limiting the adoption of PDH Technology by small-scale enterprises. The components like compressors, reactors, etc., which are required in the plants to work along with the PDH solutions are relatively higher in cost than the traditional production method. As a result, the small-scale industries have been preferring the conventional ways in place of PDH technology to produce propylene, thus, restraining market growth.
In addition, PDH units are large-scale manufacturing units, requiring remarkably substantial investments for the construction & installation of the right components. Thus, small-scale enterprises have preferred the most cost-effective solution and generally opted for the traditional process. Additionally, the energy consumption by the PDH units is also quite high, since the propylene production process requires a high amount of heat and electricity. Hence, the requirement for large-scale energy infrastructure also posed an issue for small-scale enterprises to adopt PDH technology, which has been hindering market growth.
Global Propane Dehydrogenation (PDH) to Propylene Market Trend:
Evolution of Different Patented Technologies Gaining Traction– In the Global Propane Dehydrogenation (PDH) to Propylene Market, there has been significant technological advancement in recent years, driven by consistent research and development efforts. The primary goal of these advancements has been to achieve higher yields of propylene and its derived products. Traditional propylene production methods utilizing various feedstock have demonstrated lower efficiency, prompting leading companies such as KBR, Honeywell, and others to heavily invest in research and development to develop newer and more efficient technology for propylene production. One crucial aspect of this technological evolution has been the emergence of patented technologies that have gained significant traction in recent years, through which companies have partnered to share their patented technologies for propylene production. For instance,
Consequently, the introduction of emerging PDH technologies has been propelling the petrochemical industry to upgrade its PDH plants with the latest technology and its components. As a consequence, the demand for PDH technology is expected to witness substantial growth in the coming years. These innovations promise to revolutionize propylene production, meeting the rising global demand for this essential petrochemical compound.
Global Propane Dehydrogenation (PDH) to Propylene Market (2023-28): Segmentation Analysis
The Global Propane Dehydrogenation (PDH) to Propylene Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment. It also includes predictions for the period 2023–2028 at the global level. Based on the analysis, the market has been further classified as:
Based on Propylene Production Capacity:
Among them, the Large-Scale PDH Plants have gained significant growth over the past few years. The market demand for propylene, a crucial raw material required to manufacture several chemicals and other consumer products has been constantly increasing. Therefore, large-scale PDH plants have been built to meet such heightened demand and ensure a consistent supply to downstream industries. With their higher production capacities, these plants have been generating an ample amount of propylene to fulfill the requirements of a broader customer base. Hence, the share of large-scale plants was significant in the Global Propane Dehydrogenation (PDH) to Propylene Market.
In addition, larger-scale PDH plants gained advantages from economies of scale, enabling them to achieve a lower cost per unit of propylene production. As the plant size increased, the expenses associated with infrastructure, equipment, and raw materials have been distributed across a larger production capacity, reducing production costs. This cost-benefit enhanced the profitability and competitiveness of larger-scale plants, making them more appealing in the market. Hence, the cost benefits over a period of time, associated with the large-scale PDH plants would further improve its growth in the Global Propane Dehydrogenation (PDH) to Propylene Market in the forthcoming years.
Based on Technology:
Of them all, the CATOFIN technology has a long-standing track record of successful commercial operations. It has been implemented in numerous PDH plants worldwide, providing a reliable and proven solution for propylene production. According to Lummus Technology, as of 2022, approximately 9 CATOFIN propane dehydrogenation plants have been operating worldwide, generating more than 5.0 million tons of propylene. Additionally, the technology is known for its high propylene yield since it maximizes propane conversion into propylene through its unique reactor design and catalyst selection, resulting in optimized process efficiency and increased propylene production. Thus, the PDH plant operators preferred CATOFIN Technology over the other conventional technologies, increasing the share of CATOFIN Technology in the Global Propane Dehydrogenation (PDH) to Propylene Market.
Moreover, the growing focus of the PDH plant operators to yield maximum propylene from the catalytic conversion to cater to the rising demand for propylene & its derivatives would further ramp up the share of the CATOFIN Technology in the market in upcoming years.
Global Propane Dehydrogenation (PDH) to Propylene Market (2023-28): Regional Projections
Geographically, the Global Propane Dehydrogenation (PDH) to Propylene Market expands across:
Among all of them, Middle East & African countries like Saudi Arabia, Qatar, etc., have an abundance of natural gas reserves, which contain significant amounts of propane. This has been easing the production processes since propane is a valuable feedstock required for the generation of propylene. Thus, the Middle East & Africa region has held a substantial share in the Global Propane Dehydrogenation (PDH) to Propylene Market.
Moreover, Middle Eastern countries, such as The UAE, Bahrain, etc., have been laying out plans to lower their reliance on oil & gas for economic resources. As a result, these countries have been developing downstream industries, including petrochemicals. The establishment of these industries in the region is leading to the formation of new PDH plants to produce value-added petrochemical products. Hence, the share of the Middle East in the Global Propane Dehydrogenation (PDH) to Propylene Market would further increase in the coming years.
Global Propane Dehydrogenation (PDH) to Propylene Industry Recent Development:
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Frequently Asked Questions
A. The growth rate or CAGR of the Propane Dehydrogenation (PDH) to Propylene Market during 2023-28 would be around 9.20%.
A. The increasing demand for propylene in the consumer goods industry is a prominent factor that is expected to drive the Propane Dehydrogenation (PDH) to Propylene Market during 2023-28.
A. The top players in the Propane Dehydrogenation Plant (PDH) to Propylene Market are; LyondellBasell Industries Holdings B.V., Honeywell International Inc., Dow Chemical Company, KBR Inc., Lummus Technology LLC, ExxonMobil, CB&I, Thyssenkrupp Industrial Solutions, etc.
A. CATOFIN is the leading ‘technology’ in the Propane Dehydrogenation Plant (PDH) to Propylene Market.
A. The Middle East & Africa would present growth prospects in the Propane Dehydrogenation (PDH) to Propylene Market during 2023-28.
A. The evolution of different patented technologies for propylene production is the key trend shaping the growth of the Propane Dehydrogenation (PDH) to Propylene Market.
A. The rising development of PDH plants is the growth opportunity driving the Propane Dehydrogenation (PDH) to Propylene Market through 2028.
A. High investment costs are the possible restraints affecting the growth of the Propane Dehydrogenation Plant (PDH) to Propylene Market.
Global Propane Dehydrogenation (PDH) to Propylene Market Research Report (2023-2028) - Table of Contents
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